Cannabis retailer fined $200K for alleged ‘illegal agreements’
A cannabis chain retailer, which has multiple storefronts in the Greater Toronto Area, has been fined $200,000 by the Alcohol and Gaming Commission of Ontario (AGCO).
The AGCO found Cannabis Xpress violated Ontario’s regulatory standards related to provincial anti-inducement laws, which are meant to promote fairness in the industry.
“Provincial law and AGCO standards include anti-inducement regulations to protect consumer choice and maintain a level playing field for small businesses in the cannabis retail industry,” said Dr. Karin Schnarr, CEO of the AGCO, in a statement.
In an additional statement emailed to CBC News, the AGCO said anti-inducement regulations are put in place “to protect consumer choice and maintain a level playing field for small businesses in the cannabis retail industry.”
The commission said after reviewing 82,000 documents, it was discovered that Cannabis Xpress stores “refused” to stock products unless the producer agreed to enter into prohibited inducement agreements and would only promote products from producers who entered into the deals.
It said the company also took added measures to cover up the violations over a two-and-a-half year period.
“The AGCO monitors the sector’s compliance with these requirements and will take strong action against any licensee found to be engaging in illegal behaviour,” the commission said.
In an emailed statement, the AGCO says the licensed operator has 15 days to appeal the decision.
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